Banking regulator David Carse yesterday urged banks and the Hong Kong Mortgage Corporation (HKMC) to simplify the options for homebuyers who want to borrow up to 90 per cent of a property's value. At a bi-weekly meeting of the Hong Kong Association of Banks, Mr Carse - the deputy chief executive in charge of banking supervision for the Hong Kong Monetary Authority - repeated that the 70 per cent loan to value ceiling imposed by the HKMA would stay in place. Critics of the ceiling have urged the HKMA to increase this limit to stimulate the property market. However, banks and the HKMC - which offers insurance on loans that exceed this limit up to a maximum value of 90 per cent of the property - could package home loans in a way that made it possible for customers to understand the price of buying the insurance to allow a larger loan, Mr Carse said. To illustrate his point, he said a bank might explain to a customer that based on a 70 per cent loan to value ratio, the interest rate on a home loan might be 2.5 per cent, while a loan of up to 90 per cent of the property value - secured through buying the HKMC's insurance scheme - might cost, for argument's sake, 2.8 per cent. This would make it easier for the customer to understand the scheme and its costs, Mr Carse said.